Background on Home Insurance Penetration in Mexico
According to the Mexican Association of Insurance Institutions (AMIS), only 7% of households in Mexico have voluntary home insurance, while the figure rises to 24% in the business sector. Recent weather events, such as flooding caused by heavy rains, highlight the need for increased home insurance adoption.
Andrés González Jonäng’s Call for Home Insurance
Andrés González Jonäng, the Executive Director of Insurance at Banco Santander México, emphasized the importance of home insurance for both owned and rented properties. He explained that home insurance covers various aspects, including damages from hydro-meteorological phenomena and earthquakes.
- Home Insurance Coverage: Home insurance includes coverage for damages caused by hydro-meteorological events and earthquakes, among other risks.
- Benefits of Home Insurance: González Jonäng highlighted cases where insured clients received substantial claims for flood damage, helping them recover financially.
- Rental Properties Coverage: Even for renters, home insurance covers personal belongings in case of unexpected incidents.
Current Insurance Market in Mexico
AMIS data shows that only 7% of households in Mexico have voluntary insurance, while 24% of businesses are covered. Banco Santander México offers non-auto insurance through a partnership with Zurich and collaborates with 11 auto insurers via its Autocompara platform.
Growth in Auto Insurance
González Jonäng mentioned that auto insurance has experienced significant growth, while life and health insurance have stabilized post-pandemic. He noted that 30% of vehicles are currently insured, indicating room for further growth.
Digital Trends in Insurance
González Jonäng acknowledged the increasing trend towards digital processes and products in insurance. Santander offers policy access within its banking app, attracting over 150,000 monthly users. Additionally, there is a growing preference for fully digital purchases of smaller-premium everyday insurance policies.
Santander’s New Cash Withdrawal Insurance
As an example of this digital shift, Santander recently launched a cash withdrawal insurance policy for up to 11,000 pesos over 12 hours, available for a single payment of 32 pesos.
